UPDATE 1-Canada Feb annual inflation rate cools on cheaper gasoline

OTTAWA, March 18 (Reuters) - Canada's annual inflation rate
slowed in February as a drop in gasoline prices pulled inflation
away from the mid-point of the Bank of Canada's target, data
from Statistics Canada showed on Friday.

Gasoline prices were the biggest driver of the deceleration,
resuming their decline with an annual 13.1 percent drop after
increasing in January on a year-over-year basis.

But prices still rose in six of the index's eight major
components, led by higher costs for food and shelter. Canadians
paid 3.9 percent more for food compared to a year earlier, with
higher costs for fresh fruit and vegetables contributing the
most to the increase. Shelter costs rose 1.2 percent.

Core inflation, which strips out some volatile items and is
watched by the Bank of Canada, was more robust than the main
consumer price index, edging down to 1.9 percent from 2.0
percent.